Golf buggy users may need to get insurance

OWNERS of golf buggies, quad bikes, motorised lawnmowers and other vehicles on private land could end up being forced to take out third party insurance unless EU officials take action, industry bodies are warning.

The Association of British Insurers (ABI), the Motor Insurers’ Bureau, the British Insurance Brokers’ Association and other organisations are pressing the European Commission to implement a proposal to clarify that compulsory motor insurance only applies to vehicles when in traffic, and not those used on private land.

It follows a ruling by the European Court of Justice in 2014 that compensation for injuries suffered by a Slovenian farm worker by a tractor while on private land should have been covered by compulsory motor insurance.

In July, the Commission announced it would launch a public consultation on how better to protect victims of car accidents. The consultation will be open until October.

In the UK, motor insurance is compulsory for vehicles used on public roads, but not on private land.

The insurance organisations said that if the commission failed to act, the UK Government would need to change domestic law and extend the scope of compulsory motor insurance – leading to significant disruption and additional costs. People taking part in motor sports and those with mobility scooters could also be affected, it said.

Ben Howarth, senior policy adviser, motor and liability at the ABI, said: “We recognise that victims of accidents on private land should be entitled to compensation, but making insurance compulsory for off-road vehicle users is unnecessary, unworkable and unfair.

“There is no evidence that this extension is needed in the UK.

“And it could prove the next lucrative hunting ground for claims management companies, encouraging claims that end up being paid for by all motorists through higher premiums.

“The European Commission can easily resolve this, by implementing its own proposal to simply specify that the motor insurance directive only applies to vehicles in traffic. It needs to end the uncertainty by doing this now.”

The group of UK bodies, which also includes the International Underwriting Association of London, Lloyd’s Market Association and the Forum of Insurance Lawyers, say they are urging the commission to resolve the situation.

They argue that had the accident happened in the UK, it would have been covered through employers’ liability insurance or public liability insurance.